The report details the specifics of the price surge, providing key figures that underscore the issue. The Sitajakhala Dairy Producers Cooperative Society Limited raised the price of milk by ₹10 per litre and paneer by a significant ₹100 per kg. This decision has been met with heavy criticism from consumers, as it directly contradicts the stated goals of the Centre’s economic reforms. The article notes that economists are citing this event as a prime example of how suppliers can use justifications like rising input costs to erode the benefits of a government policy.

The issue, the article explains, is not unique to the dairy industry. It is part of a broader trend where similar patterns are anticipated in other sectors, such as apparel and farm machinery. This insight is crucial for professionals in the international agribusiness community, as it shows how local market behavior can serve as a canary in the coal mine for larger trends. The central government had previously stated that GST exemptions would benefit dairy farmers, a sentiment echoed by India’s largest dairy brand, Amul.

However, the price hikes in Assam expose a significant risk: without proper regulatory oversight, suppliers’ discretion can dilute the positive impact of even well-intentioned reforms. The article highlights how this could leave consumers worse off, despite the government’s substantial sacrifice of an estimated ₹48,000 crore in annual revenue. The situation in Assam is a powerful case study for analysts and policy makers in dairy economics, demonstrating the complexities of implementing broad economic changes.